Introduction
Joint ventures are one of the most powerful—and often misunderstood—strategies in property development. In this episode of the Property Mastermind Podcast, Hilary Saxton and Bob Andersen break down how joint ventures work, why they’re so common, and the different ways developers and investors can structure deals.
They cover three main types: joint ventures with equity partners, loan partners, and landowners. You’ll hear how each type works, who brings what to the table, and the risks and rewards involved.
This episode is packed with clarity, strategy, and real-world experience. Perfect for the developer needing funding or an investor looking for better returns.
Episode Highlights
[00:00] Introduction – Kicking off episode 199 with a book giveaway and today’s topic.
[04:11] The 3 things every development needs – Money, time, and knowledge—and how joint ventures fill the gaps.
[06:12] Multiple strategies in one deal – Why some developments have more than one joint venture type layered in.
[08:04] Why knowledge is more valuable than money – There’s plenty of cash out there, but not enough skilled developers.
[09:55] The benefits for both sides – Why joint ventures are a win-win for developers and investors.
[11:34] Joint ventures with equity partners – The structure, who does what, and how profits are shared.
[12:59] Joint ventures with loan partners – How these work, what makes them different, and the importance of documentation.
[15:51] Joint ventures with landowners – Turning land into equity without selling it, and how these partnerships are structured.
[19:56] Roles and responsibilities in each JV type – What each party is expected to contribute.
[24:25] Sharing profit and risk – Common splits, managing expectations, and why communication matters.
[29:51] The importance of legal agreements – Real examples of what goes wrong when paperwork is missing or unclear.
[32:45] Exit strategies – When and how each party gets paid depending on the deal type.
[36:27] The #1 pitfall in joint ventures – Poor or missing documentation and why it’s the foundation of any good deal.
[39:22] Final thoughts – Recap and reminders for those considering joint ventures.
Episode Details
Introduction
Hilary:
Welcome to Episode 199 of the Property Mastermind Podcast. Today we’re talking about the role of joint ventures in property development. This is a great topic because joint ventures are one of the key ways people can get into property development—particularly if they’re missing either the funds, the time, or the experience.
Before we get into it, we’ve got this week’s book giveaway! The Property Millionaires Exposed book is going to Julie Fitzgerald. Julie, you’re going to love this episode. And of course, a second book, Three Wines In, is heading your way too!
Bob:
That’s a great way to kick things off. And you know what else? I’ve got a fishing tip this week. Small bait catches both small and big fish. But big bait only catches big fish.
What Is a Joint Venture?
Hilary:
Let’s start with the basics. What’s a joint venture, and why is it such a useful tool in property development?
Bob:
Great question. A property development needs three things: money, time, and knowledge. If you have all three, fantastic—you’re set. But most people are missing at least one. A joint venture (JV) allows people to team up. For example, someone might have the money, but no time or knowledge. Another person might have knowledge and time but no funds. Put them together—and now you’ve got a deal.
Hilary:
We see this a lot with our mentoring students. They’re bringing the knowledge and the commitment, and joint ventures allow them to do projects they couldn’t have done alone. But you need to be educated and have the systems in place.
Bob:
Absolutely. And there’s not just one type of joint venture—there are several. Some projects even have multiple JV structures built in.
The Three Types of Joint Ventures
1. Joint Venture with an Equity Partner
Bob:
This is probably the most common. An investor provides the equity—usually 20 to 30% of the total development cost—and becomes a shareholder in the development entity. That investor is on the title and on the loan. The developer does the work—finds the site, manages the project, deals with approvals, sales, etc. At the end, profits are split. Sometimes it’s 50/50. Sometimes the developer takes a bit more—it all depends on the agreement.
2. Joint Venture with a Loan Partner
Hilary:
And this one’s very different.
Bob:
It is. In this case, the investor provides money as a loan, not equity. They’re not on the title or involved in the loan. They lend funds to the development entity—often secured—and receive a fixed interest rate return. They don’t share profits. They’re repaid with interest at settlement or when profits are distributed.
3. Joint Venture with a Landowner
Hilary:
This one’s interesting—partnering with the landowner.
Bob:
Yes, a landowner might have a great site but no idea how to develop it. Or they don’t want to sell and miss out on the upside. The developer comes in with the expertise, runs the project, and they form an agreement. The landowner typically doesn’t transfer the land, which avoids triggering stamp duty and capital gains tax. Instead, the land stays in their name, and once the development sells, they get their agreed share.
Hilary:
And what’s expected of each party varies, right?
Bob:
Exactly. In an equity JV, the developer’s responsible for everything—approvals, builder contracts, marketing, selling. The equity partner puts in the capital and sometimes gets updates, but they’re usually not involved day-to-day. In a loan JV, the investor provides funds, and it’s more hands-off. In a land JV, it depends—but the landowner usually just provides the land.
Risks, Documentation, and Expectations
Hilary:
Let’s talk about risks—what are the main pitfalls?
Bob:
The biggest? No documentation. Or poor documentation. Things can go wrong—disagreements, delays, budget blowouts. You need a proper joint venture agreement that lays out who does what, when they get paid, what happens if someone wants out, and how profits are split.
Hilary:
Even between friends or family.
Bob:
Especially between friends or family. Have the hard conversations upfront.
Exit Strategies and Profit Splits
Hilary:
And what about exits? When do people get paid?
Bob:
In an equity JV, after everything sells and costs are covered, profits are split. In a loan JV, it’s interest plus principal—repaid either in stages or at the end. Landowners are usually paid their agreed land value first, then they get a share of the profit.
Hilary:
We’ve seen plenty of people go into JVs with unclear expectations and it gets messy. Communication and legal clarity make all the difference.
Bob:
Absolutely.
Final Thoughts
Hilary:
To wrap it up, joint ventures are a brilliant strategy—but they’re not casual. Get educated, get your paperwork in place, and surround yourself with the right professionals.
Bob:
Agreed. There’s plenty of money out there—but not enough knowledge. If you have the time and know-how, people will want to work with you.
Hilary:
Thanks for joining us for Episode 199. If you’re interested in our upcoming workshop or want to learn more about working with us, click the links. And we’ll see you next week for our special 200th episode!